Business Segments

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

We currently operate in four business segments: commercial/industrial real estate development; resort/residential real estate development; mineral resources; and farming.

Information pertaining to operating results of the Company's business segments follows for each of the years ended December 31 are as follows:

	2012			2011			2010
Revenues
Real estate—commercial/industrial	$	9,941		$	13,746		$	10,294
Real estate—resort/residential	583			16,134			281
Mineral resources (1)	14,012			12,206			6,362
Farming	22,553			21,012			18,576
Segment revenues	47,089			63,098			35,513
Investment income	1,242			1,260			979
Other income	113			98			61
Total revenues	$	48,444		$	64,456		$	36,553
Segment Profits (Losses) and Net Income (Loss)
Real estate—commercial/industrial	$	(2,330	)	$	525		$	(241	)
Real estate—resort/residential	(4,178		)	12,192			(2,808		)
Mineral resources (1)	13,678			11,997			6,238
Farming	9,230			8,437			7,662
Segment profits (2)	16,400			33,151			10,851
Investment income	1,242			1,260			979
Other income	113			98			61
Interest expense	(12		)	—			(9		)
Corporate expenses	(13,272		)	(12,277		)	(5,612		)
Operating income (loss) before equity in earnings of unconsolidated joint ventures	4,471			22,232			6,270
Equity in earnings of unconsolidated joint ventures	2,535			916			541
Income (loss) before income taxes	$	7,006		$	23,148		$	6,811

(1) During the fourth quarter of 2012, the Company evaluated its operations and determined that an additional segment should be reported, Mineral Resources. Mineral Resources collects royalty income from oil and gas leases, rock and aggregate leases, and from a cement company.

(2) Segment profits are revenues from operations less operating expenses, excluding investment income and expense, corporate expenses, equity in earnings of unconsolidated joint ventures, and income taxes.

The revenue components of the commercial/industrial real estate segment for the years ended December 31 are as follows:

(In thousands)	2012		2011		2010
Commercial leases	$	6,095	$	5,450	$	5,705
Grazing leases	1,331		1,087		1,110
Land Sale	648		4,340		604
All other land management ancillary services	1,867		2,869		2,875
	$	9,941	$	13,746	$	10,294

Commercial lease revenue consists of land and building leases to tenants at our commercial retail and industrial developments, base and percentage rents from our Calpine power plant lease, communication tower rents, and payments from easement leases. Land management ancillary services include wildlife management, landscape and property maintenance, and building management services. During the first eight months of 2012, the Company’s game management operations were temporarily suspended in order to complete the development of a new sales program and operating procedures. Please refer to Form 8-K filed on January 20, 2012 regarding the Company’s game management and hunting operations. Game management reopened operations on September 1, 2012.

The resort/residential land development segment produces revenues from farming activities within the Centennial Founders, LLC and is actively involved in the land entitlement and pre-development process. The farming segment produces revenues from the sale of winegrapes, almonds and pistachios.

The mineral resources segment receives oil and mineral royalties from the exploration and development companies who extract or mine the natural resources from our land. The following table summarizes these activities for each of the years ended December 31:

($ in thousands)	2012		2011		2010
Oil and gas	$	11,075	$	9,876	$	4,960
Rock aggregate	920		886		710
Cement	758		621		496
Land lease for oil exploration	1,257		811		196
Other	2		12		—
	$	14,012	$	12,206	$	6,362

Information pertaining to assets of the Company’s business segments is as follows for each of the years ended December 31:

($ in thousands)	Identifiable Assets		Depreciation and Amortization		Capital Expenditures
2012
Real estate - commercial/industrial	$	57,151	$	1,852	$	11,672
Real estate - resort/residential	118,627		77		4,479
Mineral resources	1,449		—		—
Farming	29,538		1,384		3,379
Corporate	121,091		1,238		1,139
Total	$	327,856	$	4,551	$	20,669
2011
Real estate - commercial/industrial	$	56,552	$	1,111	$	4,155
Real estate - resort/residential	110,147		96		7,132
Mineral resources	1,193		—		—
Farming	24,326		1,293		1,477
Corporate	129,758		1,097		885
Total	$	321,976	$	3,597	$	13,649
2010
Real estate - commercial/industrial	$	49,815	$	867	$	7,716
Real estate - resort/residential	98,829		63		5,296
Mineral resources	1,238		—		—
Farming	26,366		1,193		389
Corporate	111,843		422		795
Total	$	288,091	$	2,545	$	14,196

Segment profits (losses) are total revenues less operating expenses, excluding interest income, corporate expenses and interest expense. Identifiable assets by segment include both assets directly identified with those operations and an allocable share of jointly used assets. Corporate assets consist primarily of cash and cash equivalents, marketable securities, deferred income taxes, and land and buildings. Land is valued at cost for acquisitions since 1936. Land acquired in 1936, upon organization of the Company, is stated on the basis carried by the Company’s predecessor. During the first quarter of 2011, the Company completed the sale of five conservation easements totaling approximately 62,000 acres for $15,750,000. These easements were sold to the Tejon Ranch Conservancy, an independent non-profit organization.